Correlation Between Globe Telecom and Figaro Coffee
Can any of the company-specific risk be diversified away by investing in both Globe Telecom and Figaro Coffee at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Globe Telecom and Figaro Coffee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globe Telecom and Figaro Coffee Group, you can compare the effects of market volatilities on Globe Telecom and Figaro Coffee and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Globe Telecom with a short position of Figaro Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globe Telecom and Figaro Coffee.
Diversification Opportunities for Globe Telecom and Figaro Coffee
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Globe and Figaro is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Globe Telecom and Figaro Coffee Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Figaro Coffee Group and Globe Telecom is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Globe Telecom are associated (or correlated) with Figaro Coffee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Figaro Coffee Group has no effect on the direction of Globe Telecom i.e., Globe Telecom and Figaro Coffee go up and down completely randomly.
Pair Corralation between Globe Telecom and Figaro Coffee
Assuming the 90 days trading horizon Globe Telecom is expected to generate 1.09 times more return on investment than Figaro Coffee. However, Globe Telecom is 1.09 times more volatile than Figaro Coffee Group. It trades about -0.12 of its potential returns per unit of risk. Figaro Coffee Group is currently generating about -0.2 per unit of risk. If you would invest 223,945 in Globe Telecom on August 27, 2024 and sell it today you would lose (13,945) from holding Globe Telecom or give up 6.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globe Telecom vs. Figaro Coffee Group
Performance |
| Timeline |
| Globe Telecom |
| Figaro Coffee Group |
Globe Telecom and Figaro Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globe Telecom and Figaro Coffee
The main advantage of trading using opposite Globe Telecom and Figaro Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globe Telecom position performs unexpectedly, Figaro Coffee can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Figaro Coffee will offset losses from the drop in Figaro Coffee's long position.| Globe Telecom vs. Converge Information Communications | Globe Telecom vs. Atlas Consolidated Mining | Globe Telecom vs. Concepcion Industrial Corp | Globe Telecom vs. Transpacific Broadband Group |
| Figaro Coffee vs. SM Investments Corp | Figaro Coffee vs. Suntrust Home Developers | Figaro Coffee vs. Allhome Corp | Figaro Coffee vs. Converge Information Communications |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |